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Washington – Hog Fuel Exemption Extended

SALT Report 2892 – The Washington Department of Revenue issued a special notice regarding the sales and use tax exemption for hog fuel purchased to produce electricity, steam, heat, or biofuel. The exemption was scheduled to expire on June 30, 2013, however, due to the passage of Senate Bill 5882, the exemption has been extended until June 30, 2024.

Additionally, the Bill created the requirement for any person claiming the exemption to electronically file a tax incentive survey with the Department on an annual basis. If the business owns or operates more than one facility, it must file a separate survey for each facility. The annual survey will be due by April 30th, following the year in which the exemption was claimed. For example, the survey for 2013 is due by April 30, 2014.

If a business that claims the exemption closes a facility, which results in job losses, the business will immediately be assessed tax equal to the amount exempted for the previous two years.

To claim the exemption, the buyer must provide the seller with a Buyer’s Retail Sales Tax Exemption Certificate to document the exempt nature of the sale.